2016 $'000 200 (100) 100 50 95 8 153 Q.6 The following financial statements related to JJ Limited as at 30 June 2016. Statement of financial position of JJ Limited at 30 June 2015 $'000 Non-current assets 150 Accumulated depreciation (75) 75 Current assets Inventory 60 Trade receivables 76 Cash 6 142 Current liabilities Trade payables 60 Taxation 52 Proposed dividend 20 (132) 85 Capital and reserves Share capital 75 Retained earnings 10 85 Income statement of JJ Limited 30 June 2016 Gross profit 230 Administrative expenses (76) Loss on sale of non-current asset (3) Increase in provision for bad debts (1) Depreciation (35) Net profit 115 53 65 25 (143) 110 75 35 110 Taxation (65) 50 (25) 25 Proposed dividends Retained earnings Additional information: 1) The company purchased non-current assets during the year for $75,000 2) During the year the company sold a non-current asset for $12,000 in cash. The asset had originally cost $25,000 and $10,000 had been set aside for depreciation Required: a) Discuss the statement of cash flows under the following headings: i) Cash flows from operating activities 11) Cash flows from investing activities 111) Cash flows from financing activities b) Using the information in the case study above. Prepare the statement of cash flows in accordance with IA7 Statement of cashflows